Could someone please explain loans to me!

Soldato
Joined
18 Oct 2002
Posts
3,146
Location
Altrincham
I've been given a rather unexpected promotion this week, which will see my pay jump from 20K to 26K. For the first time in a long while i'm considering some kind of finance so I can treat myself to a really special car. I'm looking at needing to borrow between 7 and 10K to be able to afford it.

Basically I've never had to take out a loan before so could someone explain the terms to me?

I see figures like 6-7% APR floating around, so does that mean that on a 10K loan the interest would be 7% per YEAR, of the outstanding amount?
 
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